Automotive Supply Chain 2020
Becoming Agile and Future Ready in the New Normal World
Automotive industry is critical for India since it contributes to 22% of the manufacturing GDP in India and 7.1% of the overall GDP.
The Indian automobile industry is the fourth largest in the world with an annual turnover of $100 billion and employs 32 million people. India is also home to the largest two-wheeler market and tractor market in the world.
India is also a prominent auto exporter and has strong export growth expectations for the near future. Out of the ~26 million vehicles produced in India; 4.7 million vehicles are exported – this contributes to 4.3% of overall India exports in value terms.
However, the high-octane growth of the last decade seems to have slowed down due to poor consumer demand. On the other hand, the cost of production has also increased due to regulatory changes. This sector has also been significantly hit by the global pandemic. Within this changing industry landscape, there are a few notable trends that have emerged and have the potential to shape the industry in the long run.
1. Building Agility in Lean Global Value Chains: The global industry has done well following lean principles. Is there a need to build some agility in the value chain.
2. Digitization: The global industry is witnessing a significant shift with digitization across product and value chains
3. The Future of Mobility: The advent of electric vehicles, shared mobility and other trends set to make the future very different from the past
The above 3 key areas will form the discussion topic for our 3 sessions (detailed below), with shared learning from some best in class ideation and implementation.